7 Dividend Growth Stocks to Buy Now: Q2 Edition

Core Viewpoint - Dividend growth stocks are recommended for long-term investors due to their potential for above-average total returns and consistent earnings growth [1] Group 1: Dividend Growth Stocks Overview - Dividend growth stocks typically exhibit steady earnings growth, leading to appreciation in stock value alongside increases in earnings per share [1] - Reinvesting dividends can significantly enhance the initial investment, potentially resulting in substantial wealth accumulation over time [1] Group 2: Identified Dividend Growth Stocks - Automatic Data Processing (ADP) has a strong track record with 25 consecutive years of dividend growth, averaging a 12.36% annual increase over the past five years, and a current forward yield of 2.29% [3] - American States Water (AWR) is classified as a "dividend king" with 68 consecutive years of dividend increases, averaging 9.34% annually over the last five years, and a forward yield of 2.58% [5] - Cincinnati Financial (CINF) also holds "dividend king" status with 63 years of dividend growth, averaging 7.31% annually, and a recent increase of 8% in quarterly payouts [6] - Home Depot (HD) has increased dividends for 14 consecutive years, with an average increase of 13.87% over the past five years, and a forward yield of 2.69% [8] - Hershey (HSY) has a 48-year history of dividend increases, currently trading at a forward yield of nearly 3%, with expectations of improved performance as cocoa prices normalize [9] - Interpublic Group (IPG) has maintained 11 years of consecutive dividend growth with a forward yield of 4.35% and a recent increase of 6.5% [11] - McDonald's (MCD) is approaching "dividend aristocrat" status with an average annual increase of 8.01% over the past five years and a forward yield of 2.52% [12]